Germany owes Greece a debt

Germany owes Greece a debt Germany’s ducking of the war reparations issue makes its attitude to the current Greek debt crisis somewhat hypocritical

The Germans are not amused these days. Look everywhere from tabloids to the blogosphere, and it seems that the public mood has reached boiling point. Loth to shoulder another national debt increase and finance another bailout, the Germans have started questioning everything from the wisdom of supporting Greece to the common euro currency, or indeed the merits of the European integration project altogether. This might be strange for a country that is nudging ever closer to full employment, and which is about to recapture its position as the world’s leading exporter of manufactured goods from the Chinese. But the Germans say they’ve had enough: no more underwriting of European integration, no more paying for this and that, and certainly no more bailing out the Greeks.

What is truly strange, however, is the brevity of Germany’s collective memory. For during much of the 20th century, the situation was radically different: after the first world war and again after the second world war, Germany was the world’s largest debtor, and in both cases owed its economic recovery to large-scale debt relief.

Germany’s interwar debt crisis started almost exactly 80 years ago, in the last days of June 1931. What had triggered it was Germany’s aggressive borrowing in the late 1920s to pay reparations out of credit. A credit bubble resulted, and when it burst in 1931, it brought down reparations, the gold standard and, not least, Weimar democracy.

Having footed the resulting massive bill, after the second world war the Americans imposed the London debt agreement of 1953 on their allies, an exercise in debt forgiveness to Germany on the most generous terms. West Germany’s economic miracle, the stability of the deutschmark and the favourable state of its public finances were all owed to this massive haircut. But it put Germany’s creditors at a disadvantage, leaving it to them to cope with the financial aftermath of the German occupation.

Indeed, the London debt agreement deferred settlement of the reparations question – including the repayment of war debts and contributions imposed by Germany during the war – to a conference to be held after unification. This conference never took place: since 1990, the Germans have steadfastly refused to reopen this can of worms. Such compensation as has been paid, mostly to forced workers, was channelled through NGOs to avoid creating precedents. Only one country has challenged this openly and tried to obtain compensation in court: Greece.

It may or may not have been wise to put the issue of reparations and other unsettled claims on Germany to rest after 1990. Back then, the Germans argued that any plausible bill would exceed the country’s resources, and that continued financial co-operation in Europe instead would be infinitely more preferable. They may have had a point. But now is the time for Germany to deliver on the promise, act wisely and keep the bull away from the china shop.

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About Us

The Hellenic League of America, HLA’s name was inspired by the many different ancient confederations of Hellenic City-states which banded together in ‘leagues’. Such famous Hellenic Leagues were the Ionian League, the Italiote League, the Arcadian League, the Achaean League, the Peloponnesian League, the Chalkidian League, the Boeotian League, the Cretan League and the Delian League. However, our main inspiration is found in the League of Corinth, commonly referred to as the Hellenic League. Originally created under Philip II of Macedon, the Hellenic League was led by Megas Alexandros in his great campaign against the Persian Empire. It is in this spirit of brotherhood and unity that the HLA takes its name.

The 16 points of Hellenic Advocacy: The 16 points of Vergina

Pan-Hellenism

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Culture ---------------------------------------------- Education

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Nationalism

Pan-Hellenism

To Foster Unity between all Hellenic-American Organizations nationwide

2. To Foster the rebirth of lost branches of Hellenism, such as Italiote Hellenism

3. To organize and promote Pan-Hellenic events and gatherings

Nationalism

To foster healthy Nationalistic feelings in Hellenic-America for our ancestral homeland, culturally and socially; preparing Hellenic-American youth for active participation in the Hellenic-American Community

2. To advocate and support a return to our Hellenic homelands by encouraging a return to the lands under the legal jurisdiction of the current Hellenic State. To advocate and support cultural awareness of our ancestral homeland of Hellas; as well as our historical Hellenic homelands of Magna Graecia, Northern Epirus, Pelagonia, Northern and Eastern Thrace, Anatolia, Pontos and the ‘Right to return’ to Cyprus after the island has been freed of all Turkish settlers and Military occupation.

3. To foster the concept of aggressive advocacy in the United States for Issues concerning Hellenism; to battle against the stigma of ‘Nationalism’

Culture

To promote and encourage interest and research in to our ancient traditions and culture